SHANGHAI, Aug. 26 (SMM) – SHFE 1510 lead opened Monday evening session at RMB 12,980/mt and then expectation for Chinese yuan depreciation lured investors to sell LME copper and buy SHFE copper. And hence, SHFE lead soared to RMB 13,165/mt as longs entered market and closed the session at RMB 13,120/mt, down by RMB 10/mt. Trading volumes fell 2,492 to 4,456 lots while positions increased 154 to 17,896.
The PBOC raised the central parity of RMB:USD by over 100 on Tuesday. As such, SHFE lead once advanced to RMB 13,240/mt but later rolled back some gains due to Chinese falling shares, to close at RMB 13,140/mt, up RMB 10/mt. Trading volumes totaled 8,852 lots while positions declined 182 to 17,560.
Nanfang brand was offered at RMB 13,290-13,300/mt in Shanghai, RMB 80-90/mt higher than SHFE 1510 lead. Traded prices were RMB 13,280-13,290/mt for Humon brand, versus RMB 13,270/mt for Jinyuteng brand and RMB 13,260/mt for Shungyan brand (packed in iron).
Nanfang and Humon brands goods were shipped out Tuesday. But spot supply remained tight in market and cheap goods were hard to source. Downstream buyers increased some purchase after SHFE lead prices grew. The supply shortage in Henan also helped to boost trades in Shanghai. Thus, trades picked up slightly on Aug. 25.